Stock Market News

TSB current account growth tops target but profits fall as expected

Maiden interim results from TSB Banking after its June initial public offer showed profits down as expected, but a much higher flow of customers from bigger banks moving over to use its accounts.

TSB, the 'challenger' bank listed on the market by majority owner Lloyds, attracted a 9.2% share of all new current account openings in the UK in the quarter, well above its long term target of 6%.

Chief executive Paul Pester said it had been a strong six months for the group, even though profits were £16m lower than the same period last year at £78.6m, due to costs rising £62.4m from having to now operate on a standalone basis without Lloyds' economies of scale.

He said this was consistent with expectations and the underlying performance was reflected in good initial progress in its growth strategy, indicated by the current account growth.

The key target to increase lending was held back by the group's absence of a mortgage intermediary distribution channel, but Pester said it was on track to launch a mortgage intermediary channel in the first quarter of 2015.

Preparations for the launch of a new website were said to be in their final stages.

"We expect the franchise banking margin to remain broadly unchanged from its current level for the rest of the year while the group's cost base will continue to increase up to around £700m for 2014 as we further develop the business on a standalone basis."

Stock News is provided by Digital Look Corporate Solutions from Sharecast news.
Please read the terms and conditions of useage of this data. Republication or redistribution of content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Digital Look Ltd.

Get a free widget for your website with our latest headlines.

You can now add our live prices and new headlines to your website.The news widget features quotes for Oil prices, spot Gold price and Indices plus a choice of news channel for healines.